I have to acknowledge your letter of 
11 inst with copies of the
               correspondence which has recently passed with the 
Hudsons Bay C on
               the subject of the percentage paid to them on Sales of land in
               
VanCouvers Island.
               
 
            
            
               2. As the Company acquiesce in the 
Duke of Newcastle's view, that no
               percentage will be due to the Company for Sales effected after the
               payment to them of the

 amount agreed on for the repurchase of the
               Island, it only remains to forward instructions in accordance with
               that arrangement to 
Governor Douglas. I presume that His Grace will
               agree with the Company that the percentage should be paid to them on
               all sales effected before the payment of the repurchase money.